Binance Labs raises $500 million for fund that invests in blockchain and Web 3 companies

Binance Labs raises $500 million for fund that invests in blockchain and Web 3 companies

The new fund will invest in crypto companies at three stages, from incubation to late-stage growth.

Binance Labs, the venture capital (VC) arm of the Binance exchange, has raised $500 million for a fund that will invest in blockchain and Web 3 development companies.

Read this article in Spanish.

DST Global Partners, Breyer Capital, Whampoa Group and other private equity funds participated in the capital raise, according to a Binance blog post Wednesday.

"The goal of the new investment fund is to discover and support projects and founders that have the potential to build and lead Web 3 across DeFi, NFTs, video games, metaverse, social networks and more," Binance CEO Changpeng "CZ" Zhao said.

The fund will invest in companies in three stages: Incubation, Early Stage and Growth Stage.

The Binance Labs fund is the latest in a string of crypto funds recently launched by VCs. Andreessen Horowitz (a16z) raised $4.5 billion last week, demonstrating its confidence in the market despite the recent downturn.

The total market capitalization of cryptocurrencies stands at $1.3 trillion, a figure that represents a 55% drop from November, when it stood at $2.9 trillion.

This article was translated by Marina Lammertyn.